MSCI cuts Taiwan’s weighting in indices

DOUBLE DOWNGRADE:：Market analysts said Taiwan’s weightings were cut because the local bourse lagged behind other markets in the first quarter, but it was expected

Staff writer, with CNA

Fri, May 17, 2013 - Page 13

MSCI Inc, a global index provider, has cut Taiwan’s weighting in its Asia-Pacific excluding Japan index and its emerging markets index after a semi-annual index review.

In a statement released on Wednesday, MSCI said it was cutting Taiwan’s weighting in the MSCI Asia-Pacific Excluding Japan Index by 0.29 percentage points to 18.04 percent.

Taiwan’s weighting in the MSCI Emerging Markets Index will also be lowered by 0.19 percentage points to 11.04 percent, it said.

MSCI has also cut the weighting of South Korea in the MSCI Asia-Pacific Ex-Japan Index by 0.17 percentage points to 23.15 percent, and the country’s weighting in the MSCI Emerging Markets Index by 0.11 percentage points to 14.16 percent.

However, China’s weightings in the two indices have been raised — up 0.16 percentage points to 29.85 percent in the Asia-Pacific Ex-Japan Index and up 0.09 percentage points to 18.27 percent in the emerging markets index.

MSCI has also increased the weightings of Indonesia and Thailand in the two indices, while reducing the weightings of Malaysia and the Philippines in both indices.

The index adjustments are scheduled to take effect after markets close on May 31.

Market analysts said Taiwan’s weightings were cut because the local bourse lagged behind other markets in the first quarter.

Jenny Lai (賴惠娟), head of research at HSBC Securities Taiwan, said she expected the local bourse to remain resilient because the downgrade had been expected and its impact had already been factored in recent trading sessions.